Javo Beverage Company, Inc. is a manufacturer of coffee and tea concentrates, drink mixes, and flavor systems serving the food service, food and beverage manufacturing, and retail industries, and their first quarter results were very pleasing. The Company has realized an increase in product sales and installments within the dispensed beverages product lines, their core business, of nearly 12% over the first quarter of 2009. At the same time, selling and marketing expenses decreased due to several key cost reduction strategies and efforts resulting in an improved bottom line net loss for shareholders.
- Dispensed products sales were $4.7 million compared to $4.2 million, or 11.8% above the first quarter 2009. Gross sales increased 7.2% to $5.0 million from $4.7 million in the first quarter 2009.
- Selling and marketing expenses for the quarter decreased $192 thousand to 23.2% of net sales, a 500 basis point improvement from the first quarter 2009.
- Net loss was $3.1 million for the quarter, an $88 thousand improvement over the first quarter of 2009. The first quarter loss included $1.7 million of non-cash items.
- Total owned and estimated customer owned dispensing locations of 11,651 at the end of the first quarter was 20% higher compared to the same period a year ago. The Company estimates that there were 6,300 additional locations purchasing the Company's products that own and service their own dispensing equipment.
- The Company has expanded distribution for, and placement of, its new product offerings of hot, on-demand coffees and dispensed iced teas during the quarter. These newest flavors are well suited to serve the growing number of foodservice operators that want to offer their customers high-end coffee in a less labor intensive and less wasteful manner.
- Distribution and National Sales Force: The Company entered 2010 with a broader distribution footprint and national sales and service, and added 10 new distributors during the first quarter that are now capable of servicing retailers in their respective markets with Javo's dispensed beverage products.
Disclosure: No positions